MSD and Ariad announce mTOR inhibitor collaboration

Merck, Sharp and Dohme (MSD) has announced that it has entered into a worldwide collaboration agreement with Ariad Pharmaceuticals for the co-development and marketing of that company’s innovative mTOR inhibitor for use in the field of oncology.

The firm predicts that the compound, AP23573, will enter phase III clinical trials assessing its use as a treatment for metastatic sarcomas shortly.

Under the terms of the agreement, MSD will pay Ariad an initial fee of $75 million (37 million pounds), with further sums of up to $452 million payable to the firm on the attainment of a number of development and sales milestones covering a range of cancer indications.

Vlad Hogenhuis, general manager of oncology, speciality and the neuroscience franchise of MSD, said: “We are very excited to be entering into this partnership with Ariad for the development and potential commercialisation of AP23573, as it has the promise to allow us to bring an important new medicine to cancer patients globally.”

He added that the firm is dedicated to the field of oncology, with this collaboration agreement highlighting its efforts to meet areas of medical need in cancer currently not satisfied by the pharmaceutical industry.

Earlier this month, MSD announced the appointment of former-Biogen Idec executive Peter Kellogg to the position of chief financial officer at the firm.